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Insurance cancellation fees - Help Please !
HueyBuey
Posts: 24 Forumite
:mad: Hi, Just wanted to know what anyone may know about the extortionate fees required in order to cancel my insurance. Basically I have sold my car to try to save money as I am a DFW, the car my husband uses is also registered & insured in my name. My car was with Tesco his is with Provident via Its4Me.com, I spoke with both today regarding cancelling the policies to try to ascertain whether it would be better & cheaper to transfer our remaining car onto my Tesco policy as I have 7 years no claims on that or whether to cancel my Tesco policy and move my no claims to the Provident policy. Both are paid monthly and I have been advised that in order to cancel with Tesco it will cost me £53.25 and to cancel with Its4Me £71.00 ( I called Provident direct and the girl there agreed this seemed extortionate but as I purchased through Its4Me she couldn't cancel with me directly). I have been insured with Tescos for years and in that time have only ever claimed for a windscreen. Can anyone tell me whether they have appealed against these charges and received a discount of any kind ? Especially with the whole bank charges thing I wondered whether this is all actually legal, Thanks All !
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Comments
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Came across this webpage on the Fortis site the other day while answering another query on here. Quite useful because it shows the premium return due in relation to the month of cancellation. See how it stacks up against Tesco etc.
The link is here and the info you need is about halfway down.
http://www.fortisinsurance.co.uk/insurance/insurance.asp?id=motor0 -
Can anyone tell me whether they have appealed against these charges and received a discount of any kind ? Especially with the whole bank charges thing I wondered whether this is all actually legal, Thanks All !
Car insurance is an annual contract. It is not monthly. You are agreeing for 12 months insurance. The fact they allow you to pay monthly does not make it a monthly pay as you go contract.
So, if you cancel during the contract, you should expect to pay an admin fee and only get back get back a little less then pro-rata because you are also breaking a credit agreement.
Totally legal and quite fair.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Hiya,
You need to read your policy documents and see what is mentioned in there about the fees for cancelling your policy.
Usually, there will be a cancellation fee of some sort, pluss short term rates.
Depending on how long you have had the policy, the insurance company will expect you to pay a percentage of the premium depending on how long you have had the policy running. Below is a chart detailing the charges. It is not based on whole months either; if you cancel your policy 1 day into the second month of cover, you will pay 30%.
it works out as follows:
1 month (excluding first 14 days) - 20%
2 Months - 30%
3 Months - 40%
4 months - 50%
5 months - 60%
6 months - 70%
7 Months - 80%
8 months - 90%
9 Months - 100%
10 Months - 100%
11 months - 100%
12 months - 100%Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
As others have said, you bought a 12 month contract and your insurers (After the first 14 days) have no obligation to allow you to cancel it at all. Most insurers however do allow you to do so but will apply both a cancellation premium plus an administration fee for making the alterations.All posts made are simply my own opinions and are neither professional advice nor the opinions of my employers
No Advertising or Links in Signatures by Site Rules - MSE Forum Team 20 -
"Yes" insurance is one of these guilty of this practice - they can add £35 fees to the prorata charges. Since they specialise in insuring vehicles over 5 years old, it is likely that they will not be competitive when changing to a vehicle which is newer.
Something which happened to me recently when I changed from a 9 year old car to a 3 year old one, they weren't competitive on the new vehicle so it looks like i'm going to be stung when I cancel the old vehicle policy!
Since "Yes" feature in quotes from Insure Supermarket it may be one to avoid if you have an older vehicle and have some interest in replacing it within the next 12 months!0
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